Poor HR Practice & Human Right Violation In Amazon India - Third Party BRSR Assessment of Supply Chain of SEBI Listed Entity.
BRSR (SEBI) AUDIT : HR Practice - Human Right Violation
* Birendra K Jha Certified Social Auditor; Practitioner Social Impact Assessment Audit; Practitioner BRSR (SEBI ) Audit. EMail: birendrajha03@yahoo.com
The BRSR "Leadership Indicator" of Principle 5 is closely watching the HR Practices of such supply chain entity which may not be SEBI listed. The intention of SEBI is that, the main business entity should not permit any such supply chain which disturbs sustainability. This is the responsibility of the SEBI listed entity to ensure that the supply chain should must have Third Party Human Right Audit covering broadly the HR Practices as per "Leadership Indicator" of Principle 5 of the BRSR Reporting.
This shall allow the main SEBI listed business entity to sever and close business relation with companies showing poor performance on the Human Right in HR Practice or warn such companies to improve their HR Practices.
Case of Amazon India:
Amazon India is not listed in SEBI. But in most of the SEBI listed entities this enterprise is in the supply chain. Through this entity many negative sustainable impacts have entered in the the main SEBI listed business entity. Amazon India has a case record of human right violation with Poor HR Practice. SEBI listed Business entity should be more alert, if there is any supply chain listing of such entity where human right violation is seen. Social Auditors should also thoroughly check whether any such doubtful business entity is operating in the supply chain or whether human right violation has been compromised or not?
Human Right Violation of Bache Lal in Amazon India:
Amazon has case history of not honoring the labour law. Either it be United Kingdom or India. Severe human right violation is reported from Amazon. In India there are two sample cases which demonstrate adequately that human right protection is not here. Bache Lal was working in Amazon India. One day he was removed without conducting any domestic enquiry. He was not paid even the "Retrenchment Compensation." Amazon India had charged against Bache Lal, that he has abandoned the job. So Bache Lal was not entitled to reinstatement of service, back claim of wages or retrenchment compensation at the time of termination. This was illegal. This was a glaring case of human right violation. HR Department of Amazon India did procedural error. Bache Lal was entitled for:
a) Fair enquiry that was not done- if Bache Lal has abandoned the job. Since enquiry not done so order of termination is void.
b) Reinstatement in service- that was not done - as the order of termination is void.
c) Payment of back wages claim that was not done - as the order of termination is void ; and
d) Payment of retrenchment compensation at the time of termination of service that was not done. In the absence of retrenchment compensation - the order of termination is void.
Amazon India, failed to apply mind on the three important judgements on the Labour Law. Hon'ble Supreme Court of India in the case of Deepali Gundu Surwase v. Kranti Junior Adhyapak Mahavidyalaya and the two judgements delivered by the Hon'ble Delhi High Court in Municipal Corporation of Delhi Vs. Sukhvir Singh & Fateh Chand Vs. Presiding Officer, the case clearly moves around the human right violation.
Bache Lal claim for full back wages is supported by the legal principles drawn by the Hon'ble Supreme Court of India in the case of Deepali Gundu Surwase v. Kranti Junior Adhyapak Mahavidyalaya wherein it has been held that:
"If the order of termination is void ab initio, the workman is entitled to full back wages."
Similarly it has been held by Hon'ble Delhi High Court in Municipal Corporation of Delhi Vs. Sukhvir Singh & Ors., that:
"the denial of employment by the management shall have to be only according to law and if the employee has abandoned the employment, certainly that could have been a ground for holding an enquiry against him and passing appropriate order".
Delhi High Court in Fateh Chand's case again noted as follows:
"It is also no more res-integra that even in a case of unauthorized absenteeism or to prove abandonment of service on the part of the workman the management must place on record necessary material to prove that enough efforts were made by it to call upon the workman to resume back his duty and the workman has shown his clear reluctance for the same."
The management has failed to bring on record sufficient material to show that the employee has abandoned the service and abandonment cannot be attributed to the employee without there being sufficient evidence. On the failure to report for duty, the management has to call upon the employee and if he refuses to report, then an enquiry is required to be ordered against him and accordingly action taken. Unfortunately, this essential legal step was skipped by HR.
It is worthy to note here that without conducting domestic enquiry Bache Lal was removed from job in illegalize way. Therefore, Bache Lal who has worked for more than 240 days in a calendar year and hence termination order of Amazon India was void ab initio in law for non-compliance of Sections 25F (clauses (a) and (b)), 25G and 25H of the ID Act. Therefore, the removal of Bache Lal needed to be set aside, with continuity of service and full back wages.
Conclusion in Bache Lal:
a) Labour Court awarded retrenchment compensation to Bache Lal with reinstatement in service and back wages.
b) Hon'ble Supreme Court of India also confirmed the order of the Labour Court and awarded further good amount to the employee to be paid within 30 days, failing which the Management shall be liable to pay interest @ 8% per annum on the aforesaid amount from the date of Award till the date of its realization.
Another Instance of Human Right Violation at Amazon India:
The National Human Rights Commission has issued a notice to the Union Ministry of Labour and Employment over "Target Achievement" during the "harsh working conditions in severe heatwave" with ‘anti-labour law’ practices at Amazon’s warehouse located in Haryana’s Manesar. The Secretary, Labour Ministry, has confirmed the allegation. It should be noted that Haryana has been a favored destination for warehouse facilities by many companies because of the minimum wage slab in the state. As compared with Rs. 21,000 in neighboring Delhi, Haryana has the minimum wage of Rs. 11,000.
Out of India, Amazon has a culture of poor HR Practice. For this reason and unfair labour practice, Amazon has faced criticism of poor working conditions in UK. In UK several multiple strikes by workers have taken place against Amazon. The United Kingdom Government has slapped even a fine of USD 5.9 Million Dollar on the unfair labour practice. This penalty speaks very large. Exactly this UK culture of "Target Achievement" has travelled to India at the cost of human right violation, as seen at Haryana.
Amazon speaks many good words. But the base HR Practice is very poor in this company. Amazon India Warehouse employees have recorded poor working condition grievances. But, they have not been properly attended.
The employees are not allowed "Toilet Facility" and "Water Breaks" unless they meet target work. As Ruchi Gupta, one of the foremost voice on Labour correctly said on such Amazon practice:
"These expectations of productivity should be vetted to ensure that they do not impede compliance with basic employee rights such as meals, rest periods, and access to bathroom facilities".
Clearly, this is worst HR Practices seen anywhere in the world. This practice is in United States and United Kingdom as well as in India. This is just tip of the iceberg.
The Amazon India needs deep Human Right Assessment Audit on HR Practices. If it wishes to remain in supply chain of any SEBI listed business entity. The SEBI listed entity has to ensure this on top priority.
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